re: #241 LudwigVanQuixote

It is a bubble based on perception. At the first panic, everyone who got in later will lose their shirt. I simply do not understand how people keep doing the same stupid shit over and over.

I used to think that too, that gold couldn’t go any higher. And higher it went. Here’s the snag: many mines are playing out. China and India, both with many civilians who cannot depend on their government to provide for them in their old age, and whose families are small enough that that won’t work either, are big markets for gold. The buying power of these people is surging.

In purchasing power parity terms, China is already nearly the economic equal of the U.S. Gold might drop 50% but it’s not going to just up and collapse.

///Not until the fabulous gold mines of Antarctica can be brought into production. Right now the ice is in the way but that’ll clear up in a few centuries. ///